Tuesday, October 30, 2007

Couple Scalp Trades

Went short this morning by buying SDS at 50.36 and got out before the market started reversing again at 50.43 Very small trade like the last few I've made.  I feel really really confident making these scalp trades.

 

I feel my risk is a lot lower compared to holding a stock overnight, or weeks or months. Plus I lower my risk even more by accounting for the volatility in the stock and adjusting my position size accordingly. So my risk is very very low compared to my reward. This fits in with my personality as I'm a relatively impatient person but I've developed the patience to wait for opportunities now.

 

The volatility right now in the markets make what I'm doing fairly easy in my opinion. I just ride the waves up and down, trying to make a little cash in a sideways environment.

 

sds trade chart

 

I went long on SCON right after I went short. The market started turning and the stocks I have in my "hot seat" watch list were starting to turn tot he upside. I got in on SCON at that moment. Got in at 13.20 and got out at the top of the candle at 13.60 which seemed to be the high for that time and about 20 minutes after that.

 

scon trade chart

 

I'm probably going to call it a day as I'm low on buying power and I can't keep buying the same stock over and over (SDS) even though I want to keep going short on these small dips. So, we'll see what happens. Maybe a rally will happen at the end of the day.

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